Survey shows Apple’s iPhone a tad too expensive?

“Consumers aren’t willing to pay what Apple may ask for the iPhone, but if the price drops they’ll switch their mobile service to AT&T in order to get it, according to results of a survey released Thursday,” Nancy Gohring reports for IDG News Service.

“Online market research firm Compete Inc. surveyed 379 people in the U.S., most of whom had heard of the iPhone and have shopped for an iPod, to find out how interested they are in the device to produce the uncommissioned report,” Gohring reports.

“Among the 26 percent of respondents who said they’re likely to buy an iPhone, only 1 percent said they’d pay $500 for it,” Gohring reports.

“Forty-two percent of those who said they’re likely to buy the phone said they’d pay $200 to $299,” Gohring reports. “The iPhone will be available only to subscribers of Cingular Wireless, now part of AT&T. In a blow to the operator’s competitors, 60 percent of those in the survey who said they were likely to buy the phone said they’d switch their mobile operator in order to get it.”

Full article here.

[Thanks to MacDailyNews Reader “drew_ill” for the heads up.]
Let’s conduct our own survey — admittedly using a much larger sample than Compete Inc.’s — right now:

Of those interested in our scrumptious new candy bar, how many would buy it at $1? Okay now, how many of you would buy it for 40-50 cents?

Gee, imagine that, whodathunkit? More of you want it for less money than for more. We’ve got a secret for you: when we release it four months from now, we’re charging $1 each for them because we already know that 26% of you describe yourselves as “likely” to buy it anyway and that’s the highest we’ve ever seen in all our years making candy!

Seriously, Apple has most certainly done their market research. As has AT&T. Let’s skip the goofy surveys with their tiny samples and flawed methodologies and wait to see what actually happens, okay?

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  1. Billions of people would say that Mercedes, BMW, Porsche, and thousands of other products are too expensive. Being cheap is not where all of the money is. My wife will buy an iPhone if it is $2500. $600? they will sell millions and millions

  2. I will probably get one the first week it’s out. Of course I’d rather spend less than $500, mostly because I’m cheap, but I’d also like to know what kind of support Apple is going to allow to 3rd party developers.
    I think the biggest selling point of the phone is the software foundation it has in the use of OS X. Imagine the ecosystem that will evolve when developers can program for the platform!!!

  3. >Let’s skip the goofy surveys with their tiny >samples and flawed methodologies and wait to see >what actually happens, okay?

    Right, because surveys and statistics are facts, and we don’t worry about facts. Facts are little annoying things that get in the way of what’s really important–what we feel in our hears without reference to extrinsic evidence or that annoying thing some people call “reality.”

  4. Cell Phones aren’t candy bars, Apple will have a tough time selling these in high quantities until the price drops some, but they can only produce so many at at time, so they will sell to the initial push first with the higher price, then gradually the price will come down they will continue to sell in the second or third wave of interested parties.

    I’d love one, but my budget would never allow me to spend $500 on a phone, but in a year or two, I’ll be able to make the switch I’m sure.

  5. For a market research company… they aren’t too bright. Didn’t Apple say that they were targeting a 1% market share? Doesn’t their own survey say the only 1% of surveyed would buy it. Really!… it’s called a market niche. Obviously not everyone is going to buy it. They just want to turn it into FUD making people think it is negative, when really it is spot on.

  6. First incarnations are always priced for early adopters. After that the price will evolve as does the feature set.

    The iPod is a perfect example of that dynanmic. The first iPod held 5gig of storage and had a B&W screen (I’m still using my 3G iPod). Subsequent generations protected tope line revenue and introduced lower cost versions, until Apple broke out different models of the iPod (iPod, iPod mini, iPod nano, iPod Shuffle).

    The same thing will happen to the iPhone. The next generation may incule more memory, 3G vs 2.5G data, better camera, enhanced PDA like features.

    Then there’s the combinations of products that Apple can ship. How about an iPhone with iPod sans Internet Communicator, or an Internet Communicator with iPod, or an iPhone with Internet Communicator sans iPod, or an iPod with Camera.

    Or how about a new product like a hand held point of sale register with a credit card swipe (receipts emailed to buyer).

    Any issue over the initial price is a big non-issue. I’m already on Cingular’s list to get one (have been since right after the Keynote). Apple is going to sell a TON of these things.

  7. Wow! You’re more delusional than I thought!

    Only 1% said they’d pay $500 for an iPhone. That doesn’t mean only 1% would “like” to pay $500. Thus, your candy bar example is flawed. 25% of people said they are likely to buy one, but that means they’ll probably wait to see if the price comes down.

    Here’s an example: I’m likely to buy an HDTV sometime soon. But I’m not going to pay $3000, I’ll wait until it comes down to $2000. See? Price is restrictive.

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